Long-Serving Male Employees Most Likely To Commit
Fraud in UK

More than seven out of 10 (72%) cases of corporate fraud
examined over the past two years were committed by male
employees only, compared with female-only fraudsters being
identified in 7% of cases and both male and females
involved together in some 13% of cases.
Of the perpetrators, 32% had been working for their firms
anywhere form 10 to 25 years, according to a news release
issued by KPMG’s UK Forensics division.

By department, finance is the most likely business area
that the fraudster targeted or was responsible for (40% of
cases). Procurement was the next most likely area (12.5%),
while one in ten frauds occurred in the sales area.

“One of the alarming findings from the study was the
seniority of the perpetrators – we found that directors or
senior managers committed almost two thirds of the 100
cases surveyed,” according to Alex Plavsic, the UK national
head of fraud investigations at KPMG.

Breaking down the cases even further, KPMG found the age
of the principal fraudster to fall in the 26 to 45 year old
range 41% of the time, while 29% of cases involved those
between 46 and 55. Those between 18 and 25 made up only 1%
of perpetrators.

KPMG found the primary reason corporate fraud was
committed in the UK was a weak corporate control
environment.
In other instances, the perpetrator abused key authorities
(33%) and just over one in 10 frauds were achieved by the
fraudster operating in alliance with others to circumvent
controls.

Once nabbed, dismissal of the perpetrator was the most
common response:
more than half (55%) of the fraudsters were fired.
Interestingly though, in just under one in five cases no
sanction was taken, which KPMG attributes to concerns about
the reputational impact of fraud becoming known

“This study has highlighted some worrying findings,
and particularly demonstrates the need for companies to
continually review their internal controls. Regular
testing of key controls against the risk of fraud will
identify any weaknesses in the system, which could easily
be exploited by potential fraudsters,” added
Plavsic.